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Saving and Investment: Paradigms, Puzzles, Policies

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  • Schmidt-Hebbel, Klaus
  • Serven, Luis
  • Solimano, Andres

Abstract

The 1990s have seen a renewed interest in issues of capital accumulation and growth. New paradigms for saving, investment, and growth have been advanced to address theoretical and empirical puzzles and to guide the design of better policies. This paper provides a policy-oriented review of recent theoretical and empirical work on the determinants of saving and investment and on their links to growth. It takes stock of new findings as well as still unresolved questions and gives particular attention to empirical regularities and to the policy issues relevant to developing countries. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Schmidt-Hebbel, Klaus & Serven, Luis & Solimano, Andres, 1996. "Saving and Investment: Paradigms, Puzzles, Policies," World Bank Research Observer, World Bank Group, vol. 11(1), pages 87-117, February.
  • Handle: RePEc:oup:wbrobs:v:11:y:1996:i:1:p:87-117
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